South American Country Reiterates Crypto Restrictions Amid Worldcoin Trouble

Worldcoin (WLD), the cryptocurrency project co-founded by Sam Altman of OpenAI, has stirred significant attention in Ecuador since its introduction in June.

However, this surge in interest has led local authorities to issue warnings regarding the project’s legitimacy and potential risks.

The Central Bank of Ecuador has recently reiterated its stance against the use of digital assets for transactions. Their statement follows Worldcoin’s launch of its World ID verification service, which became available at several locations in Quito and Guayaquil at the end of June. The service, which involves iris scanning for verification, has attracted many participants eager to earn Worldcoin tokens.

Reports from local media suggest that while Worldcoin has gained traction, some participants may not be fully aware of the implications of sharing their biometric data. Concerns have been raised about the transparency of the process and the potential for exploitation.

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In addition, Ecuador’s new Data Protection Superintendency (DPS) has criticized Worldcoin for not informing authorities about its operations, citing a lack of resources to monitor such activities. The Superintendence of Companies (SOC) also cautioned the public about Worldcoin’s unregulated status and advised against providing biometric data for incentives.

The Central Bank of Ecuador emphasized that cryptocurrencies are not recognized as legal tender in the country and warned that transactions involving digital assets would be reported for further investigation.